China Merchants Bank (3968) Q1 2025 earnings summary

Executive summary

• Net operating income for Q1 2025 was RMB83.731 billion, down 3.11% year-over-year; net profit attributable to shareholders was RMB37.286 billion, down 2.08% year-over-year.

• Net interest income rose 1.92% year-over-year to RMB52.996 billion, while net non-interest income fell 10.71%.

• Total assets reached RMB12,529.792 billion, up 3.11% from year-end 2024; total loans and advances to customers increased 3.44%.

• Asset quality remained stable with a non-performing loan (NPL) ratio of 0.94%, down 0.01 percentage point from year-end 2024.

Financial highlights

• Net operating income: RMB83.731 billion (-3.11% YoY); net profit: RMB37.286 billion (-2.08% YoY).

• Net interest income: RMB52.996 billion (+1.92% YoY); net non-interest income: RMB30.735 billion (-10.71% YoY).

• Basic and diluted EPS: RMB1.48 (-1.99% YoY).

• Annualised ROAA: 1.21% (-0.14pp YoY); annualised ROAE: 14.13% (-1.95pp YoY).

• Net cash from operating activities: RMB95.026 billion (vs. -RMB1.208 billion YoY).

Outlook and guidance

• The bank will focus on dynamic rebalancing of industries, regions, and customer bases, and continue to optimise asset allocation and risk management.

• Plans to actively support real estate market stability and maintain overall asset quality through proactive risk management and disposal of non-performing assets.